Four Things You Need to Know About Houston Home Values After Harvey!
Last week, we had the pleasure to go to a workshop with Old Republic Title and discuss how Realtors®, appraisers, and title companies can work together with Houston area homeowners in the post-Harvey real estate market.
Many homeowners are asking how to sell your home after Harvey. These are four essential things you need to know about your home’s value after Hurricane Harvey:
1) Homeowners Who Restored Their Homes Should Not Discount Their Homes
Homes that were only flooded once (during Harvey) and are now restored to their pre-hurricane Harvey condition should sell for exactly what they were selling for before Harvey. A lot of people, including some real estate agents, are thinking that you should automatically go in and reduce your sale price by 15-20% due to the flooding. However, this will artificially deflate the market’s prices and that is not good for any homeowner in the Houston area.
Again, this discussion about pricing is regarding homes that have already been remodeled/restored, properly treated for mold, and any other flood-related issues addressed. Appraisers will use sales data from pre-Harvey to determine value if the home is restored to its pre-flooded condition. If you have taken the time and spent money to restore your home, you deserve to list your home at its actual current market value.
2) Realtors® Can Help Get Qualified Homeowners Assistance
There are loan programs available for homeowners who flooded and didn’t have flood insurance since a disaster declaration was issued. FHA 203k and 203h can both help people rebuild or purchase, often with 100% financing. Some of these programs are time sensitive, so if you have any questions about them, call us at (713) 714-5926 or click here to email us.
3) It Takes Years to Calculate the True Impact of a Storm Like Harvey
Molly Evans from Old Republic Title Company said that they still believe that it is too early to know the true effects of the storm, because Houston is so large, and the storm affected a wide, diverse area of all kinds of homes. People are selling homes in all stages (gutted, moldy, remodeled, upgraded, etc.). While national data (from other disaster areas after Katrina, Sandy, etc.) can help predict a little bit, it’s not very clear exactly how this will play out for heavily impacted communities and neighborhoods like those near Addicks & Barker Reservoirs in Houston, along Buffalo Bayou, near Northwest Houston’s creeks, and near rivers in Rosenberg/Fort Bend County and Harris County. Working with a Realtor® early in your home buying search helps you get updated and accurate information that is not always reflected in online listing sites.
If your home was flooded, we know you are going through a very stressful time and may be hearing conflicting information. Before you consider any direct offer to purchase your home for cash, or feel pressured to sign a contract to sell your home without a Realtor® representing you, you may want to talk with a licensed Realtor®. We can help you consider all factors in determining the appropriate price for your home in this after-Harvey market and whether selling now is in yours and your family’s best interests.
4) Realtors® Have Strategies to Help Affected Homeowners & Home Buyers
Realtors® with experience will be able to work with licensed contractors to help homeowners & home sellers determine home price and value. Homeowners should talk to a licensed Realtor® before they think about selling their home, especially if a community or group of homeowners decide to sell their houses for a small percentage of its pre-Harvey value. According to Old Republic Title, if a community does this, it will render recent comps unusable. Working with a Realtor® early in your selling or buying process, no matter the stage your house is in, will ensure that you get the best out of the post-Harvey real estate market.
If you have questions about this timely update on Houston’s real estate market values, give Cathryn or Kayla a call at (713) 714-5926. If you’ve thought about selling your home or have been planning to buy a home and can’t decide what’s best to do now, we can help you sort through your options to help you make the best decision for you and your family.
Links to helpful post-Harvey mortgage and home financing info: